ROADS and Maritime Service (RMS) will pay Great Lakes Council more than $1.8 million to take responsibility for, and upgrade, a section of the Old Pacific Highway at Bulahdelah for the next decade.
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At the August 12 strategic committee meeting, councillors agreed to accept the RMS’s lump sum offer of $1,172,904 to transfer a section of the highway, from south of Booral Road to the Lee Street interchange, now called Bulahdelah Way, into the council’s care.
‘‘As with previous handovers, negotiations have been ongoing with RMS to determine a compensation amount to be paid to council for the transfer of asset ownership,’’ the council’s manager of transport assets, Greg Pitt, said.
‘‘The amount has been based on the existing condition of the road and works required to bring this road up to a satisfactory condition over a 10 year period.’’
Mr Pitt said the money was for ‘‘renewable requirements’’ for the next 10 years.
RMS will also pay the council $652,007 to upgrade the Markwell Road and Lee Street roundabout.
The money will also be used to reconstruct Lee Street, plus $5000 for work on Kestevans Road.
In total, the RMS will pay the council $1,829,911. All work will be undertaken by the council’s operations section, Mr Pitt said.